Bookkeeping makes this easy by tracking all the financial transactions that happen in your business. EBay’s Seller Hub lets you download reports, but you’ll need to match them with your bank statements to keep things accurate. Keep tabs on sales, fees, and expenses to make tax filing and make smarter business decisions. Meanwhile, eBay would’ve deducted fees and taxes before the payout, so your deposit wouldn’t match the original sale amount. Webgility automates transaction tracking so that there’s accurate tax reporting across platforms.

Features

The user can add separate sections for different product categories as needed. Then a row for total COGS can be at the bottom of each table for a quick look. Businesses with variable COGS can adjust most templates to capture those costs. Tracking Cost of Goods Sold (COGS) is essential to calculate gross profit. This template, too, must allow customizable fields to match any specific business.

Easy Auctions Tracker: Best eBay-only software

Etsy accounting is crucial for all sellers, regardless of experience level, to track financial data effectively. You should ideally be updating your spreadsheet every now and then–daily, that is if you have a large quantity of sales or at least on a weekly basis for lesser activities. More frequent updates ensure accuracy of the bookkeeping and also relieve stress during tax season. A gross profit spreadsheet will basically track revenue for each month alongside COGS for each product.

Step 3: Calculate eBay fees and taxes

International sellers face additional complexities regarding VAT, GST, and customs duties. Some countries require digital reporting, while others require manual submissions. However, implementing advanced strategies can simplify your processes and enhance financial accuracy.

Be sure to check the laws in your state to determine whether or not you’re required to collect sales tax. For example, in some places, sales tax is required for goods, but not services. Once you’ve set up your accounts and tracked your sales, it’s time to organize the records and bookkeeping for etsy sellers store the data in a way that is easy to access and understand. This involves creating folders and filing systems for each category of data, as well as labeling the files appropriately. It’s also important to keep backup copies of all your records in case something goes wrong with the original files. Etsy sellers must navigate complex tax obligations, which vary based on location and business structure.

Invoice and payment tracking

Without this step, financial statements may overstate earnings or underreport liabilities. Lastly, set aside time every month to review your books to ensure accuracy. This can help you identify trends or problems early and make plan adjustments where needed. Remember, organized and accurate financial records are crucial for your success as an Etsy seller.

• The platform also features an AI assistant that identifies top customers, calculates daily revenue, and reviews discounts or refunds.
• This guide offers essential tips for Etsy sellers to streamline financial processes and support sustainable growth.
• However, only some business owners are number ninjas, and making sense of the confusing financial data can be daunting.
• Keep a log of all transactions and payments from Etsy and reconcile them with your bank statements regularly.
• Etsy provides a Sales Tax Report in the Finances section of your Shop Manager.

Recording Etsy Sales in QuickBooks Desktop

On the other hand, VAT (Value Added Tax) applies in the EU, and each country has its own set of rules for VAT rates. When you sell on Etsy, you’re essentially running your own business and are considered self-employed. In the United States, the self-employment tax is a social security and Medicare tax for individuals who work for themselves. It’s critical to trial balance set aside money throughout the year to meet these tax obligations.

Download our Sample Ecommerce Financial Reports

QuickBooks Online, Zoho Books, and FreshBooks are all solid picks for sellers who want more hands-off automation. Zoho HVAC Bookkeeping Inventory is completely free if you fill 50 or fewer orders a month. You’ll get 50 shipping labels and can send 50 invoices too, and you can manage inventory stored at one warehouse.